SNL Financial Provides Additional Data on Citizens Financial Group's $10.6 Billion Bid for CF

CHARLOTTESVILLE, VA. -- SNL Financial has released a new table of the fifty largest U.S. banks reflecting Citizens Financial Group’s (Citizens), a subsidiary of The Royal Bank of Scotland Group, announcement that it will acquire Charter One Financial (CF) for a reported $10.6 billion.

SNL Financial’s Director of Financial Institutions Group, Dave Kungl, noted, “The extension of the branch network into New York and the Midwest is a good story, but the premium appears high relative to a group of comparable deals. The bank has also relied on sales of mortgage-backed securities in recent years to help support earnings. Adjusted net income excluding gains on sale of securities has gone down in recent years.”

“Loan originations for non-single family loans are down over the last two quarters, an area where they hoped to improve. They have expanded branches very rapidly, and their net interest margin is lower than their peers, all of which have made some analysts worried,” added Kungl. “Although they have ramped up revenues from deposit activities, Charter One has struggled to diversify as noninterest income as a percentage of operating revenue also lags their peers.”

Click on the following link http://www.snl.com/press/20040505.pdf for additional deal-related analysis and data including comparable deal metrics for recent deals of similar size, comprehensive deposit market share data, a branch marketshare map, and a complete table of the fifty largest U.S. banks, or contact Mike Scott, Manager of M&A, at 434-951-7632 or email mscott@snl.com.

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SNL collects, standardizes and disseminates all relevant corporate, financial, market, and M&A data — plus news and analysis — for the Banking, Financial Services, Insurance, Real Estate, Energy and Media & Communications industries. For more information, visit www.SNL.com.